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Endogenous growth theory: a critique
Author(s) -
AlUbaydli Omar,
Kealey Terence
Publication year - 2000
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00232
Subject(s) - incentive , endogenous growth theory , growth theory , economics , value (mathematics) , neoclassical economics , positive economics , microeconomics , market economy , computer science , machine learning , human capital
Endogenous growth theory is based on a misperception of how science and technology are acquired and diffused. In particular, it is incorrect to assume that knowledge is freely available. Any knowledge which has economic value has to be accessed via the brains of experts who are members of the relevant ‘invisible college’ and are rivalrous.It therefore has the characteristics of a private good which can be left to conventional economic incentives to supply.